“There is nothing permanent except change.” -Heraclitus
As we have mentioned before, one of the greatest benefits of blockchain and DeFi is its ability to wipe out a vast amount of inefficient business systems. The switch to smart contracts and DeFi tech could be the leap that businesses are looking for: they can save businesses tons of money in labor costs, third party dependability and overall efficiency of their model. Current inefficiencies in the market, amongst most any area of transfer, are costing businesses a substantial amount of profit every year. The goal of today is to shine light on a few inefficiencies and the capabilities within the decentralized realm to bring about change.
What sorts of inefficiencies are out there? A couple examples are closures on house sales and the issue of real time trading of assets. Some other examples of inefficiencies are a lack-of-integration, bottlenecking, repetitive action and, to build on real time trading issues, the lack of transparent insight in dealing with trades.
There is clearly seen in too many business practices, a great lack of system and department cooperation/ consolidation. When this happens, there is poor communication, departments can be in different stages of a transaction or order causing them to either duplicate or skip steps in the process, ultimately causing a slowdown. “Bottlenecking” or the usage of the piece of a system that is centralized and is necessary for transactions to occur, is caused when this centralized entity is either the only one or one of few computers able to complete or process a vital step in moving a transfer forward; Bottlenecking is something we can see in banking or information processing/ transferring practices. When these bottlenecks happen, or some other sort of obstacle in asset transfer processes, this can cause a lag in real time value of the asset being traded, causing receipts to read a different number than the “agreed” upon price, which also points to a lack of security for assets or even peace of mind for traders.
Blockchain sets out to do away with all of these costly inefficiencies. Blockchain can bring together any volume of departmentalization into a common system of commerce and data transfer, it can even reduce the need for departments, the variety thereof, with more efficient, user friendly dApps and other services which help to make things like order placing, data search and input, appraisal and many others a great deal more speedy and less laborious and spread out. This decentralization rids the economic sphere of bottlenecking with the much more secure alternative of peer to peer trading, where smart contracts bring about resolutions, transparency and efficiency at levels we can’t find on today’s web.
DeFi is the future, and will always progress and change for the better. The Market Wins in our hands, and DeFi puts our economy right in the palm. Thanks for reading, remember to leave some feedback!
Written by SMH from ofthefreemarket.com on February 12, 2021
